Engineering Inspection free essay sample

Before 1990, they was a small but highly successful company that offers machinery and insurance services. After years of above average growth and profits, they are moving backward from the industry average, policy delivery times are excessive and morale is low. They need to change their current strategy as it is no longer effective. The issues they are facing is not only internal but also face the challenges from the external environment. Analysis and discussion Critical Operation and Strategic problems A. The increasing of employee turnover rate at 17% in 1990 is the sign of company dysfunction in EIIC. It caused the rising of sentiment of being undervalued in underwriters who feel deprived of relevant decision making power. They receive a monthly salary of $2,250 over $27,000 yearly income. The career advancement among underwriter and acquisition of the other jobs aside to the job at EIIC. At this moment, employees experience the dissatisfaction in company even the slightest can immediately resign to go for another jobs. We will write a custom essay sample on Engineering Inspection or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page B. Beside the turnover rate among employees, EIIC also realise the grow of disputes and conflicts between branch managers and the chief inspectors which is raised from the ineffective company structure. The decision was made by chief inspectors instead of bank managers ensure the certain risks. But the tasks of chief inspectors is oversee inspection activities instead of monitoring their inspection staffs. This structure is the source of internal confliction in organisation. The branch manager is responsible for the all the losses and failed goals instead of chief inspectors. Another problem is the late delivery of insurance policies. They usually complete in 14 days on the average. However, it is only able for small policies and a large policies always take at least 43 days to finish. In details 26 days for First Inspection Order to be completed, 10 days for the supervisory inspector to approve the completed FIO, 5 days to underwrite the risk after the supervisory inspectors approval, and 2 days for filling, recording data and other miscellaneous tasks. D. At last, planning and coordination of activities between engineers and inspectors are also the problem encountered in EIIC. They are making the process slower and unreliable causing the loss of teamwork and services quality. From a CEO view point, the internal problem is need to deal with first. Reducing turnover rate of employees is the most serious thing to do in order to maintain the workforce quality as they are all high level of experience and trained practical. Underwriter should be placed in more important goals and objectives in order to inspire their morale along with inspectors to improve the coordination. Secondly, the branch manager need to be given more authority and less responsible. These responsible have to be share for the chief inspectors as well as they are also involving in process. Restructure the organisation is essential to speed up the writing and submission of insurance policies but it seems to be a long-term solution for EIIC. Evaluate company pattern of decision in structural and infrastructural Engineering inspection activities is the base of insurance policies in EIIC. It ensures the services offered by engineering department are perfect, supervised and efficient. Furthermore, EIIC developed a elaborate evaluation scheme which leverage the quality of checking and validating inspection in engineering department. Field inspectors approach the supervisory inspectors first instead of chief inspector. Aside the efforts, EIIC also employs experienced, highly trained practical engineers and licensed machinery inspectors. In each branch, a special agents is employed to deal with independent agents who have direct communication with the clients. Their multi branches given them the ability to response to customer in one hour maximum. It is the reason for customer to stay with EIIC as it is very dependable. Implied performance objectives Dependability: Experienced and highly trained employees in EIIC delivered a good services in term of quality and dependability. Flexibility and cost: They inspected and insured a wide range of equipment at various coverage. However, time for policies preparation is so long and insured only the machinery equipment is the weaknesses has lowered their competitive advantage in the market compare to other competitors. Redesign the business Short-term solution EIIC need to speed up the writing and submission of insurance policies. They need to shorten the time for each stage in the process. From inspector to  underwriting, the number of inspection requirement need to be cut down specially on smaller policies instead of following the same process as the large policies. Inspectors do not have to inspect whole area of property and industry area but concentrate on the demand of customer inspection. They should have more authority to make decision without having interruption from the managers. Insurances policies need adjustment to remove the unnecessary stage in evaluating level in certain situation. Although it will speed up the process, it will reduce the level of competitive advantage as EIIC lies on the inspections services. Aside from speed up the process, EIIC can increase their profit and competitive advantage by increase the numbers of customer stay with company. In order to archive this goal, they should develop a marketing department or program to sell the service directly to customers in each branch instead of going through independent agents . This way can causing problem as the service policies is not approach to customers directly. Long-term solution A permanent solution for solving the problem of high turnover rate is create a culture within organisation. Employees is treasure resource of the organisation, they should treat them with better employees incentives as increasing the compensation packages and extend the implication to wider range of position within the company from the top to each branch. Certain position as inspectors and underwriter need to be empowered their authority for certain areas to offer them more freedom and independent in making decisions. Therefore the process is more flexibility, faster and could undertake a larger amount of work if it is necessary. Sometimes, this solution can make the workforce become more playful and losing concentrate of working. The organisation need to be restructured as the older one is so obsolete. By this way, the structure can remove a certain unnecessary positions in order to make the company more simple and efficient. In management level, function will be relocated in different way as well as relationship between managerial level. For example, branch managers will have more authority to make decision in activities of inspections instead of taking responsibility for chief directors. Further than that, the supervised control, reporting activities and monitoring need to be reduced from the top head as well as inspiring the communication between departments to  increasing speed of process. There could be risk in restructuring the organisation as it need a long time to take place and considered carefully. It may lead to several destruction in functions and management. Conclusion EIIC was struggling with internal confliction within the workforce, existing structure is inefficient as they are not satisfy employees and customer need. They need to relocate their resourced for better use because it is wasted time and money of company. There are no best strategy for organisation but only the most matched strategy for organisation in certain situation.